A call for action to deconstruct structures of discrimination and oppression reverberates throughout U.S. society, including in the nonprofit sector. Nonprofit organizations, specifically their boards of directors, are being asked to reassess the diversity of their leadership (or lack thereof) and to consider whether satisfaction of their charitable missions is more likely when those boards reflect the communities served by such organizations. This Article describes the current state of diversity on nonprofit boards of directors, the impact on organizations when boards are more diverse, and approaches to increasing board diversity. The Article then articulates an argument that nonprofit directors fulfill their fiduciary duties by considering the potential impact of increased board diversity on their organization’s ability to accomplish its mission and, where indicated, by diversifying their membership. In conclusion, the Article advocates, on the basis of those fiduciary duties, that state charity regulators should require nonprofit organizations to disclose how they consider diversity in their director selection processes and whether their boards reflect their communities and clients.
TIME TO FLIP THE TABLES: BOARD DIVERSITY AND THE FIDUCIARY DUTIES OF NONPROFIT DIRECTORS
Volume 95, No. 3, Spring 2023